They were not afraid to pay for good financial planning

canada goose Being A Millionaire Isn't Nearly As Impressive As It Used To Be Lewis J. Walker, AdviceIQ Sep. 18, 2014, 12:41 PM Being a millionaire is no longer all about lavish meals and private jets — it’s now the baseline amount needed for a happy retirement. Pool/Getty Images For many, millionaire status is a pipe dream. But to be reasonably comfortable in your golden years, a million dollars is only the threshold. Celebrated in song, literature www.mild-und-leise.de , movie plots, and motivational seminars, becoming a millionaire status was a sign of financial independence. In the past, perhaps. Today, not so much. Retiring baby boomers find, as baseball legend Yogi Berra said, «The future ain’t what is used to be,» and neither is a million dollars. It takes $6.2 million today to buy what $1 million bought in the 1970s. Over the past 40 years, inflation averaged 4.83% a year, with total inflation at 383%. To minimize the risk of running out of money in retirement, not withdrawing more that 4% of principal a year, it takes $1.25 million dollars to provide $50,000 a year in cash flow. That’s $4,166 before taxes per month, hardly a princely sum. However, the near-retirees are not even close to that baseline. The average savings of a 50-year-old is $43,797, according to statisticsbrain.com. Already, 80% of those ages 30 to 54 do not believe they will have enough money by the time they retire. Sadly, many of them are right. Outside of winning the lottery or a big inheritance, financial freedom is a do-it-yourself project. Getty Images/Kevork Djansezian Outside of winning the lottery or a big inheritance, financial freedom is a do-it-yourself project. There is no magic, but there are strategies. Obviously, saving for the future is foundational, but you must recognize the time value of money. To be a millionaire by 65, starting at 30 with savings growing at 6% annually, you need to invest $2,164 per month. Wait until 35, and you must save $3,164 per month. Starting at 40, a startling $6,102 per month. Learning to control debt and wasteful spending as well as disciplined saving and investing at a young age pays off. How else to get there if you are not one of those big-money singers, actors, sports stars, or technology wunderkinds? The millionaires I know as a financial advisor did it the old-fashioned way through hard work and prudent and disciplined saving. They took advantage of stock options, pensions, company retirement plans and other benefits. Some built closely held businesses with sustainable value and well-thought-out succession plans. They invested in stocks with sufficient patience and discipline to ride through periodic downturns. In many instances, they added money to equity accounts when everybody else panicked and sold, a strategy the legendary investor Sir John Templeton advocated years ago. They invested in real estate, exercising prudence relative to long-term investing mild-und-leise.de , and paying attention to market cycles. They were not afraid to pay for good financial planning, legal, and tax counsel to keep and grow more of what they earn. They answered the «what if?» questions with defensive strategies involving life, health, disability, and liability insurance to secure the future. They recognized the wisdom of a comprehensive estate plan so as to not leave their family and surviving spouse in dire straits. What is your plan for retirement security when $1 million is no longer enough? Read the original article on AdviceIQ. Copyright 2018. SEE ALSO: 4 Things Young Self-Made Millionaires Have In Common canada goose parka

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